(Recasts, adds details)
Oct 1 Tinpo Holdings Industrial Co Ltd withdrew
its offer to acquire Western Prospector Group Ltd WNP.V,
saying it became aware of an unpublished resolution instructing
the Mongolian government to explore the full nationalization of
the country's uranium industry.
As of December 31, 2007, Western Prospector held six coal
exploration licenses in four different regions of Mongolia.All
the company's mineral properties are located in Mongolia.
Tinpo said it remains interested in Western Prospector and
"hopes the situation in Mongolia will evolve in a way that
would permit a transaction to occur in the future."
Separately, Western Prospector said Tinpo had no right to
withdraw the offer and that it plans to vigorously pursue all
of its rights and remedies against Tinpo.
Tinpo Holdings had offered C$1.34 per share for Western
Prospector, valuing the company at C$74 million ($70.01
million), topping an earlier offer made by Khan Resources Inc
Tinpo Holdings' offer was set to expire on Sept. 30. As of
Sept. 26, about 73 percent of Western Prospector's shares were
tendered, representing a support for the deal.
Western Prospector's shares, which have risen about 30
percent so far this year, closed at C$1.30 Tuesday on the
Toronto Venture Exchange. Trading in the stock was halted
($1=1.057 Canadian Dollar)
(Reporting by Chakradhar Adusumilli in Bangalore; Editing by